National Audit Office Management of Large Business Corporation Tax

NAO Study Overview

Study Outline

This study will provide a strategic overview of the key risk areas affecting the management of large business Corporation Tax.
This study is aimed at:

  • reviewing the Department’s approach to the management of large business Corporation Tax.
  • considering the top three or four areas that are impacting on the effective and efficient collection of large business. Corporation Tax.

For these main areas the study will:

  • seek to unpack the issues
  • quantify
  • consider current approach
  • consider impact of issues on large businesses and the Department
  • identify best practice
  • provide recommendations to the Department on possible improvements.
    The study will also include a review of performance management systems.

Core Questions for consideration

  • What are the key risk areas that are impacting on the Department collecting the ‘right’ amount of Corporation Tax from large businesses?
  • Is the LBS effectively assessing and managing these risks?
  • How does the Department measure its performance on managing large business Corporation Tax?

Study Approach

  1. Analysis of Departmental Data
  2. Focus Groups - internal and external to the Department
  3. Consultants - tasked with bringing the large business perspective to the study.
  4. International - comparison with other key countries, which are also home to a high proportion of large businesses.
  5. Stakeholder consultation - The NAO will establish an advisory panel to comment on scope and methods, emerging findings, conclusions and recommendations. It is proposed that the panel will include large businesses, academics, tax practitioners, and HMRC Treasury. The NAO will present to the Large Corporates Forum and draw on representatives for the focus group and advisory panel. The NAO will appoint an experienced tax consultant to act as mentor to the project.

Scope - What will not be covered in depth

  • The study will not consider in detail the enquiry process (as the NAO study did reviewing area offices).
  • The burden on large business of the compliance regime will be covered by reference to previous work by NAO and HMRC (for example KPMG, Sir David Varney review). If particular issues emerge in the field work we may need to respond.

Timing

Fieldwork - Dec-Mar
Draft Audit Findings/Report to Dept - Apr
Publish Report - July

Contact

David Allen
National Audit Office
Telephone: 0207 7798 7720